Question

The partnership of Angel Investor Associates began operations on
January 1, 2012, with contributions from two partners as
follows:

The following additional partner transactions took place during the
year:
1. In early January, Lance McGinnis is admitted to the partnership
by contributing $50,000 cash for a 20% interest.
2. Net income of $250,000 was earned in 2012. In addition, Scott
Wilson received a salary allowance of $45,000 for the year. The
three partners agree to an income-sharing ratio equal to their
capital balances after admitting McGinnis.
3. The partners' withdrawals are equal to half of the increase in
their capital balances from salary allowance and income.